Ecosciences Inc (OTCMKTS:ECEZ) filed its annual report for the full year ended May 31, 2016, on September 20, the stock gained $0.003 per share in the stock market. This was despite the fact that the company recorded a decline in revenues, by approximately $6,000 on a year-over-year basis. In addition to this, the expenses of the company also surged by approximately $300,000, with a similar increase observed in the net loss for the FY2015.
One of the positive things highlighted in the report was that ECEZ had improved its cash position by $4,000, compared to the preceding year. Unfortunately, this was also accompanied by an increase in the convertible and outstanding debt, during the same period. ECEZ recorded a surge of $24,000 in its convertible debt, with a $23,000 increase in notes payable, for the FY2015. As such, Ecosciences noted in its annual report that its ability to continue as a going concern is dependent upon its ability to obtain necessary equity financing and the continued financial support of its stakeholders.
It is surprising to see increased investor interest in the stock, despite a poor annual report from the company. Earlier at the start of August, Ecosciences issued an update to its shareholders, on its progress on government contracts for solutions to sewer treatment and grease reduction. The company noted that the local government sewage maintenance market was valued at $25 billion.
In order to gain a strong footing in this industry, ECEZ announced that it would pursue potential partnerships, with several engineering companies on the East Coast, to pitch for such government contracts. Furthermore, Ecosciences also plans to ally with distributors to provide services to government agencies. No update on any of the potential partnerships has been issued as yet. Added to this, Ecosciences planned to add seasoned professionals to its team, which would bring it in better position to bid for these contracts. Finally, the company will be preparing treatment tests, which would help it showcase the effectiveness of its products.
Ecosciences Inc (OTCMKTS:ECEZ) completed the September 21 trading session, with a gain of 1.25% in its share value, on a trade volume of 415,874, to close at $0.0081 per share.